1. Have you received an e-mail or SMS from Income Tax Department on March 29 / 30 March 2021 related to the Income-tax return (ITR) filed for the financial year 2019-20 and missed the response by the due date i.e., 31st March 2021?
2. THE MESSAGE READS LIKE THIS: “The Income Tax Department has received information on financial transactions/activities relating to XXXXX2080X for Financial Year 2019-20? However, as per records available, this information is not in line with the Income Tax Return Filed for AY 2020-21(relating to FY 2019-20).
2.1 The I-T department has asked the taxpayers to either file a revised ITR by March 31 or reply to the query on the compliance portal latest by March 31. The issue is that the deadline to reply was only two days.
3. REASONS FOR NOTICE: There could be multiple reasons for taxpayers receiving such intimation. The prominent ones being non-reporting of FD interest and savings bank account interest in the ITR.
3.1 This is because TDS is not deducted on Saving Account Interest, hence not reported in form 26AS and you have not considered it in your I tax Return, but it has been reported to the department through other sources/returns.
3.2 The taxpayers who filed their ITR and forgot to mention interest income in their ITR found it difficult to file a revised return within two days. As banks were closed on Holi, many people faced difficulty in collecting interest certificates from their respective banks.
3.3 Those taxpayers who got this SMS from the I-T department but could not take any action on or before March 31 are worried about penal action from the I-T department
3.4 If you are also one of them, do not get panic. However, you should not ignore the notice.
4. ACTION TO BE TAKEN
4.1 The notice should be responded to in the manner the Income-Tax Department prescribes.
4.2 If you agree that tax is less paid, compute the tax payable and pay the same taxes along with interest, as on date.
4.3 Intimate your jurisdictional officer about action taken thru speed post.
5. STEP BY STEP PROCEDURE TO RESPONSE NOTICE – E CAMPAIGN
Step 1: Visit Compliance Portal at https://compliance.insight.gov.in
STEP BY STEP PROCEDURE TO INITIATE ACTION
Step 2: You will get redirected to the e-filling portal. You can also use the URL https://incometaxindiaefiling.gov.in to access e-filing portal.
Step 3: For registered users, log in using your user ID and password. For new users, click ‘Register Yourself’ and perform the subsequent steps to register with the e-filing portal.
Step 4: Once logged into the e-filing portal, click ‘My Account and then select ‘Compliance Portal’. You will get redirected to the Compliance Portal.
Step 4A You can also click ‘Compliance’ on the toolbar and then select ‘Compliance Portal’.
Step 5 You will get re directed to the compliance portal
Step 6 Click on “Financial Year” under the Significant Transactions/Non- Filing of Return/High-Risk Transactions option (Whichever is applicable).
Step 7: The information is available for submission of response. To view details of the information, you need to click on the “>” button to view information detail.
Step 7A Bulk Facility
To submit the information in bulk, you need to select multiple transactions at a time and also, you can select only two feedback options to submit the response in bulk: –
Step 8: You will also be able to submit an online response by selecting among any of these options:
(i) Information is correct,
(ii) Information is not fully correct,
(iii) Information related to another person/year,
(iv) Information is duplicate/included in other displayed information, and
(v) Information is denied.
6. There would be no need to visit any Income Tax office, as the response has to be submitted online.
7. PAYMENT OF TAXES: if you accepted the information, compute the tax payable on the amount, pay along with interest thru regular assessment challan, and send the payment details to your jurisdictional officer thru speed post.
8. This will avoid the compounding of interest and penalty in the future.
Disclaimer: The article is for information purposes only.
The author may be approached at caanitabhadra@gmail.com
Author Bio
Hello Ma’am,
Thanks for the detailed article and Q&A, it’s very insightful.
I had also received e-campaign notice. I have now responded in May by accepting the income in Compliance portal but have not filed revised return yet.
Couple of questions:
1. I had got a refund (eg 10k) but now with new calculation my refund should have been lower(4K). So should I pay back the extra refund I got (6k)?
2. The refund amount already receive by me is not reflecting in the revised ITR. So if I add the new payment challan of 6k to the revised ITR the refund amount would again become inaccurate. Please guide.
Regards,
Vineet
Thank you for detailed explanation of SMS notice . My wife has got notice of high value transaction for not including FD and SB interest of co-operative Banks. This was not noticed as we filed as per Traces 26LS. Not while preparing for revised efile for FY 2019-20 noticed that 80TTB is not enabled, only 80TTA is enabled. She is senior DOB 19/6/1960. Any reasons for this?
FY 2019-20, As of 31st March 2020, she is not Sr Citizen. DOB is June 60.
From 2020-21 onwards, 80TTB will be enabled for her.
Maam, in one of your earlier responses for the notification through e-campaign you mentioned that the calculation will be tax amount + Cess + 1% interest. However if I try to re-file I see some additional amounts under
Interest for default in payment of advance tax (section 234B)
Interest for deferment of advance tax (section 234C)
Can you please clarify how these amounts are calculated?
234(B) is for interest on short /non payment of advance tax , that shall not be relevant / applicable.
Yes , You r right. Department is charging interest .
Please share your e-mail id. I will explain the method of calculation with an illustration.
Please share your e-mail id. I will explain the calculation of interest with the illustration
My email ID is angelo_gomes@yahoo.com. Basically are you saying that we can ignore the amount for Interest for default in payment of advance tax (section 234B) and need to pay the amount for
Interest for deferment of advance tax (section 234C). Please clarify
Good afternoon Mam, I filed my client’s income tax return in ITR-3, with with no account case, i.e. only put figure in last column of balance sheet and profit and loss account column no. 64 , showing only gross turnover, gross profit and net income, and expenses. Now I am getting defective returns notice u/s 139(9). so please guide me how to rectify the returns………….Regards Kailash
Submit the reply within 15 days of notice :
Login to http://www.incometaxindiaefiling.gov.in with your user ID [PAN] and Password.
(b) Download utility for XML file.
(c) Mention the details – (i) date of original return and acknowledgment number. (ii) Notice No. & Date. Select “Original “in front of – whether original or revised.
(d) Fill up the correct details.
(e ) (e ) Click on tab “e-file” and in the drop-down select “e-File in Response to notice u/s 139(9)”
(f) Upload the XML file
I had filed my ITR1 for Assessment year 2020-21in feb 2021 but it was shown as defective and wants to file revised return but online submission for revised return is over. I had tried to submiit through offline (XML) but while filling, there asking password at the protected sheet at Unique number u/s 139/9 . So, please kindly tell me what should be entered for the password.
The date for belated I T returns for FY 2019-20 has been extended recently. It is 31sy May 2021.
You can file an online revised return. However, E- filing portal has not yet activated for the revised return. Wait for some time
Hello Mam,
Thanks a ton for detailed article & answers to numerous queries by different individuals, it’s very helpful.
I had also received e-campaign notice. I had responded same in Compliance portal & also paid additional tax + cess on 30th April, but couldn’t file revised return as last date was 31st March.
Couple of questions:
1. Should I wait for IT department to send me challan?
2. Now that date for revised return is extended till 31st May, should I submit revised return?
3. The return calculation software shows interest under 234/B & 234/C – how do I calculate right amount for interest?
Regards,
Niks
Thanks for your humble comment.
Interest under section 234B & 234 C is for deffereed/delayed payment od Advance Tax .
E- filing portal has not yet activated for revised return. Once, it will get activated, interest payable liability under section 234 will be auto-calculated.
Since the rate for revised return has been extended, the functionality for revised return will be activated soon and then you file the revised return using the same.
Do not wait for the I tax Department to send a notice.
If some one received notice on 29 th march 21 high value transactions, not taking in to a/c saving bank interest plus Fixed deposit interest amounting to Rs .52000 /-:only.But the assessee has claimed refund of Rs. 16000/- Then tax on income not accounted is less than refund claimed Then no need to deposit Tax. Clarify me.
If you have not received refund and payable amount is less than refund claim , don’t pay anything but submit response in compliance portal is advisable.
As & when receive refund , recompute the net amount ( payable or refundable ) and accordingly take action
Is only payment of tax sufficient? Because now revised return cannot be filed as time limit has expired. Is it acceptable that tax has been paid but the return is not filed?
Making payment now will stop your running meter of compounding interest.
In case, you receive notice of such discrepancy in the future, your liability to pay interest on pending taxes will not be till the date of the notice.
You can submit details of the tax already paid.
Thanks mam for the action to be taken against the ECampaign/SMS alert. Appreciate your efforts for sharing the same. Superb. Keep it up mam.
Thanks for your humble comment.
Who is the juridistional officer
You can find the jurisdiction office from the income tax filing portal.
(a) Visit the official website of Income Tax at https://www.incometaxindiaefiling.gov.in/home
(b) Select AO from “Know Your TAN|AO”
(c ) Enter “PAN” and “Mobile Number” and then click “Submit”
(d) Enter the OTP received on your registered mobile number and click “Submit”
(e) PAN jurisdictional details will be displayed on the screen for the concerned PAN number.
(f) Jurisdiction details along with Email id will be displayed
(g) Copy the jurisdiction detail and find it in Google
You will get all the details, address, phone number etc
Thank you for your article.
My question is : What if I have not accepted the information? Will they send another sms for the approval/decline of my response. PS: SMS is so easy to miss.
Also, can you please elaborate point 7 “Payment of Taxes” a bit more.
Thank you
Message thru SMS under e-campaign is just a two-way communication initiated by the department.
You may easily miss it. But one thing is sure, the department has details from sources indicating tax avoidance.
Based on that information, they can very well send proper notice any time under Income Tax Act.
If as per your calculation, the information is not correct, you can submit the response denying the information.
Your case may close on verification of the correctness of your response by the department.
I will try to explain the Payment of taxes with an example :
Suppose, you missed considering the interest of Rs 20000 /- on saving bank as your taxable income and not added in your taxable income.
You got the SMS and login thru the compliance portal, it is confirmed that tax was required to be paid on Rs 10000 /-( after considering permissible deduction under section 80TTA ) interest on saving bank.
You are in the tax bracket of 20%. You will pay tax under regular assessment ( online payment can be made by creating challan from the NSDL portal)
Tax computation will be (2000+ 80(cess) + Interest @ 1% p.m ( from 31st March 2021 till date of payment).
Hope , it is cleared
After check my HVT statement myself view is no tax liability. but confirmation from banks takes time confirmation received till end of april any action by IT dept. for not submitting respose till today/ 30 Apr
You can submit after 30th April ( if sure that there is no tax liability )
Otherwise, the sooner , the better ,in order to avoid compounded tax interest and penalty , if any.
can we send the details by email to the jurisdictional officer mail available with profile section of the assessee instead of speed post ?
The best way to submit a hard copy and get acknowledgement.
The next is speed post / registered AD. It will help you to produce the proof of payment/response in case of future demand.
The interest will not be compounded after the date of payment and submission of proof.
The E-Mail will not have such acknowledged proof of delivery.
What to do if someone has not responded to the E-Campaign notice ?
You will certainly get demand notice along with interest and penalty from the department as they are having details of tax liability etc and also alert you thru e-campaign
This article is published for the people who has not responded to the e-Campaign Notice
Ma’am can you please tell under which section these notices are being issued? and under which section do they have the power to call for this information which they are reqesting in the compliance portal? Even for this year (FY 2020-21) there are many SMS coming which are requiring the assessees to confirm/deny the details by logging on to the compliance portal. But under which section of the Act are they empowered to call for this information? Also what are the consequences if no response is submitted to the compliance portal? Is there any penalty or prosecution prescribed under any section? Any insight into this will be greately appreciated, thank you!
Income Tax Department has all the right to ask for information. E- the campaign is a communication channel.
Non/Wrong compliance with communication from Income Tax Department, may lead to face Notice from Income Tax Department regarding assessment/Penalty/Prosecution, etc.
mam, what should be done if we Missed Action on Intimation Notice Received – E- Campaign? and ITR due date was left???
As mentioned in the article, you can still pay the tax, if due, and intimate your jurisdictional officer.
You can submit a response to the e-campaign now also.